ICICI Direct has given Buy recommendation for Bharat Electronics recommended buy rating on the stock with a target price of Rs 205 in its research with a target price of Rs. 205 in its research report issued on Jun 24, 2021
ICICI Direct’s research report on Bharat Electronics
Bharat Electronics (BEL) reported revenues at Rs 6908 crore, growth of 19% YoY (vs. I-direct estimate of Rs 6485 crore), on the back of normalising supply chain and execution business operations. For FY21, revenue came in at Rs 14063.8 crore up 8.8%, YoY. Absolute EBITDA for the quarter came in at Rs 1970.6 crore (vs. our estimate of Rs 1529.8 crore), up 32.9% YoY. EBITDA margin came in better than estimated at 28.5% (above our estimate of 23.6%) improving ~300 bps YoY, owing to reduced other operating expenses and employee expenses. Consequently, PAT came in at Rs 1352.4 crore, up 30.7% primarily due to higher execution, improved margins. Also, other income was up 102% to Rs 57 crore, YoY.
We revise our target price to Rs 205, 19x on FY23E EPS (earlier TP Rs 170) and reiterate BUY.